How to Downsize For Retirement

Retirement Brings Changes

As you enter your twilight years, there are a number of changes that you make. Your social circle changes, your hobbies change, and your day to day routine changes. So why is your housing situation staying the same? When people think of moving into this period of their life, they think that it’s time to downsize for retirement.

But why is this so often associated with retirement? Why not keep things the same as they always were? By downsizing, you’ll be able to make certain aspects of your life simpler so that you can focus on others that truly matter (such as visiting grandkids and playing Canasta).

Why Downsize for Retirement?

Typically, people downsize due to one or more of the following reasons:

The intent to cut back on expenses to ensure and sustain a comfortable lifestyle

The inclination to move from a home that feels like an “empty nest” after the kids have grown up and left to live their own lives and raise their own families

The need to have less worry over upkeep and maintenance chores, and more time to focus on health and other personal activities

The desire to spend the rest of your years in your dream location

What Matters Most when Downsizing

Before making any plans to downsize, it is important to do a personal assessment and deep soul-searching to determine what matters most to you at this stage in your life. Is it your health? Your spirituality? Being close to your children and grandchildren? A support community? Fewer financial pressures? A natural and peaceful environment with temperate weather and no traffic? It’s typical for priorities to change as people age. You’ll have to know what yours are so you can make adjustments accordingly.

What Options do you have when Downsizing?

Once you have your priorities confirmed, list down feasible options that can help you realize what you want to achieve when you downsize for retirement. Some of the most common are:

Stay in your home and just cut back on expenses. Especially if you are emotionally attached to your home and leaving it will make you sadder instead of happier, moving will end up being a burden. So rather than give up your home, think about all your current expenses and every little way you can reduce each one. From basic necessities like food, transportation, and clothing, to utilities including your phone bill and cable bill, to entertainment needs and investment plans, you have to reassess your budget and make sure that you will continue to pay only for those you need, and stop wasting your money on those you can live without.

Turn a part of your home into a source of income. If you don’t want to move out of your house and your expenses are already down to their minimum, instead of downsizing, think of upgrading. This is applicable for those who have extra areas in their home which can be rented out and turned into money-making spaces.

Sell your home and buy a smaller one. If you have too many empty rooms in your home and you’re ready to let go of what has been your haven for a good number of years, it may be time to live in a smaller home at a location that is more conducive to your needs as a senior. And there’s no need to break your bank to buy a brand new home. We have modular homes now and they’re turning out to be practical housing solutions for those who want to buy high-quality homes at the most affordable rates.

Consider renting. If you want to be free from the usual maintenance chores and would rather have someone else do them for you, renting might be an option you’d like to explore. Costs are somewhat more predictable when you are renting, especially if you move to a place where cost of living is lower that what you have been used to. And if you are able to choose a good location in a nice community, more than just being able to save on costs, you’ll have a better sense of safety and security as you are almost assured that you can easily get help when you need it.

The Downsized Bottom Line

Downsizing does not necessarily have to mean giving up your home. By cutting down on other expenses or coming up with ways to earn additional income, it will be possible to live out the rest of your years in your family home happily and comfortably. Of course if you are ready to start over with a new place, come check out our lot at 750 Parkway Lane here in Billings. We offer affordable modular housing that will keep you comfortable well into your golden years.